6 7 LONG TITLE8 General Description:9 This bill modifies provisions related to the Community Reinvestment Agency Act.10 Highlighted Provisions:11 This bill:12 ▸ removes provisions that prevented the creation of an economic development project13 area after 2016;14 ▸ allows an economic development project area to receive tax increment through an15 interlocal agreement between a taxing entity and the agency;16 ▸ addresses measurement of the project area funds collection period;17 ▸ requires a community that creates an agency having a housing allocation from tax18 increment to create an affordable housing plan;19 ▸ allows an agency to use the agency's housing allocation to implement the affordable20 housing plan;21 ▸ requires a description of how an agency used the agency's housing allocation in the22 agency's annual budget report;23 ▸ imposes certain requirements on jobs that will be created for post-performance24 distribution;25 ▸ for urban renewal project areas, removes the option to reduce the agency's housing26 allocation;27 ▸ requires an agency to start distributing the agency's housing allocation held from28 project areas created in the past; and29 ▸ makes technical and conforming changes.30 Money Appropriated in this Bill:31 None32 Other Special Clauses:33 None34 Utah Code Sections Affected:35 AMENDS:36 17C-1-102, as last amended by Laws of Utah 2018, Chapter 36437 17C-1-102.5, as enacted by Laws of Utah 2016, Chapter 35038 17C-1-401.5, as last amended by Laws of Utah 2018, Chapter 36439 17C-1-402, as last amended by Laws of Utah 2018, Chapter 36440 17C-1-405, as last amended by Laws of Utah 2016, Chapter 35041 17C-1-407, as last amended by Laws of Utah 2016, Chapter 35042 17C-1-412, as last amended by Laws of Utah 2018, Chapter 31243 17C-1-603, as last amended by Laws of Utah 2018, Chapter 36444 17C-1-806, as last amended by Laws of Utah 2018, Chapter 36445 17C-2-203, as last amended by Laws of Utah 2016, Chapter 35046 17C-3-103, as last amended by Laws of Utah 2016, Chapter 35047 17C-3-109, as last amended by Laws of Utah 2018, Chapter 36448 17C-3-201, as last amended by Laws of Utah 2016, Chapter 35049 17C-3-203, as last amended by Laws of Utah 2016, Chapter 35050 17C-3-205, as last amended by Laws of Utah 2016, Chapter 35051 17C-5-307, as enacted by Laws of Utah 2016, Chapter 35052 REPEALS:53 17C-3-101.2, as enacted by Laws of Utah 2016, Chapter 35054 55 Be it enacted by the Legislature of the state of Utah:56 Section 1. Section 17C-1-102 is amended to read:57 17C-1-102.Definitions.58 As used in this title:59 (1) "Active project area" means a project area that has not been dissolved in accordance60 with Section 17C-1-702.61 (2) "Adjusted tax increment" means the percentage of tax increment, if less than 100%,62 that an agency is authorized to receive :63 (a) for a pre-July 1, 1993, project area plan, under Section 17C-1-403, excluding tax64 increment under Subsection 17C-1-403(3);65 (b) for a post-June 30, 1993, project area plan, under Section 17C-1-404, excluding tax66 increment under Section 17C-1-406;67 (c) under a project area budget approved by a taxing entity committee; or68 (d) under an interlocal agreement that authorizes the agency to receive a taxing entity's69 tax increment.70 (3) "Affordable housing" means housing owned or occupied by a low or moderate71 income family, as determined by resolution of the agency.72 (4) "Agency" or "community reinvestment agency" means a separate body corporate73 and politic, created under Section 17C-1-201.5 or as a redevelopment agency or community74 development and renewal agency under previous law:75 (a) that is a political subdivision of the state;76 (b) that is created to undertake or promote project area development as provided in this77 title; and78 (c) whose geographic boundaries are coterminous with:79 (i) for an agency created by a county, the unincorporated area of the county; and80 (ii) for an agency created by a municipality, the boundaries of the municipality.81 (5) "Agency funds" means money that an agency collects or receives for agency82 operations, implementing a project area plan, or other agency purposes, including:83 (a) project area funds;84 (b) income, proceeds, revenue, or property derived from or held in connection with the85 agency's undertaking and implementation of project area development; or86 (c) a contribution, loan, grant, or other financial assistance from any public or private87 source.88 (6) "Annual income" means the same as that term is defined in regulations of the89 United States Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as90 amended or as superseded by replacement regulations.91 (7) "Assessment roll" means the same as that term is defined in Section 59-2-102.92 (8) "Base taxable value" means, unless otherwise adjusted in accordance with93 provisions of this title, a property's taxable value as shown upon the assessment roll last94 equalized during the base year.95 (9) "Base year" means, except as provided in Subsection 17C-1-402(4)(c), the year96 during which the assessment roll is last equalized:97 (a) for a pre-July 1, 1993, urban renewal or economic development project area plan,98 before the project area plan's effective date;99 (b) for a post-June 30, 1993, urban renewal or economic development project area100 plan, or a community reinvestment project area plan that is subject to a taxing entity101 committee:102 (i) before the date on which the taxing entity committee approves the project area103 budget; or104 (ii) if taxing entity committee approval is not required for the project area budget,105 before the date on which the community legislative body adopts the project area plan;106 (c) for a project on an inactive airport site, after the later of:107 (i) the date on which the inactive airport site is sold for remediation and development;108 or109 (ii) the date on which the airport that operated on the inactive airport site ceased110 operations; or111 (d) for a community development [project area plan or a], economic development, or112 community reinvestment project area plan that is subject to an interlocal agreement, as113 described in the interlocal agreement.114 (10) "Basic levy" means the portion of a school district's tax levy constituting the115 minimum basic levy under Section 59-2-902.116 (11) "Blight" or "blighted" means the condition of an area that meets the requirements117 described in Subsection 17C-2-303(1) for an urban renewal project area or Section 17C-5-405118 for a community reinvestment project area.119 (12) "Blight hearing" means a public hearing regarding whether blight exists within a120 proposed:121 (a) urban renewal project area under Subsection 17C-2-102(1)(a)(i)(C) and Section122 17C-2-302; or123 (b) community reinvestment project area under Section 17C-5-405.124 (13) "Blight study" means a study to determine whether blight exists within a survey125 area as described in Section 17C-2-301 for an urban renewal project area or Section 17C-5-403126 for a community reinvestment project area.127 (14) "Board" means the governing body of an agency, as described in Section128 17C-1-203.129 (15) "Budget hearing" means the public hearing on a proposed project area budget130 required under Subsection 17C-2-201(2)(d) for an urban renewal project area budget,131 Subsection 17C-3-201(2)(d) for an economic development project area budget, or Subsection132 17C-5-302(2)(e) for a community reinvestment project area budget.133 (16) "Closed military base" means land within a former military base that the Defense134 Base Closure and Realignment Commission has voted to close or realign when that action has135 been sustained by the president of the United States and Congress.136 (17) "Combined incremental value" means the combined total of all incremental values137 from all project areas, except project areas that contain some or all of a military installation or138 inactive industrial site, within the agency's boundaries under project area plans and project area139 budgets at the time that a project area budget for a new project area is being considered.140 (18) "Community" means a county or municipality.141 (19) "Community development project area plan" means a project area plan adopted142 under Chapter 4, Part 1, Community Development Project Area Plan.143 (20) "Community legislative body" means the legislative body of the community that144 created the agency.145 (21) "Community reinvestment project area plan" means a project area plan adopted146 under Chapter 5, Part 1, Community Reinvestment Project Area Plan.147 (22) "Contest" means to file a written complaint in the district court of the county in148 which the agency is located.149 (23) "Economic development project area plan" means a project area plan adopted150 under Chapter 3, Part 1, Economic Development Project Area Plan.151 (24) "Fair share ratio" means the ratio derived by:152 (a) for a municipality, comparing the percentage of all housing units within the153 municipality that are publicly subsidized income targeted housing units to the percentage of all154 housing units within the county in which the municipality is located that are publicly155 subsidized income targeted housing units; or156 (b) for the unincorporated part of a county, comparing the percentage of all housing157 units within the unincorporated county that are publicly subsidized income targeted housing158 units to the percentage of all housing units within the whole county that are publicly subsidized159 income targeted housing units.160 (25) "Family" means the same as that term is defined in regulations of the United161 States Department of Housing and Urban Development, 24 C.F.R. Section 5.403, as amended162 or as superseded by replacement regulations.163 (26) "Greenfield" means land not developed beyond agricultural, range, or forestry use.164 (27) "Hazardous waste" means any substance defined, regulated, or listed as a165 hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant,166 or toxic substance, or identified as hazardous to human health or the environment, under state167 or federal law or regulation.168 (28) "Housing allocation" means project area funds allocated for housing under Section169 17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412.170 (29) "Housing fund" means a fund created by an agency for purposes described in171 Section 17C-1-411 or 17C-1-412 that is comprised of:172 (a) project area funds allocated for the purposes described in Section 17C-1-411; or173 (b) an agency's housing allocation.174 (30) (a) "Inactive airport site" means land that:175 (i) consists of at least 100 acres;176 (ii) is occupied by an airport:177 (A) (I) that is no longer in operation as an airport; or178 (II) (Aa) that is scheduled to be decommissioned; and179 (Bb) for which a replacement commercial service airport is under construction; and180 (B) that is owned or was formerly owned and operated by a public entity; and181 (iii) requires remediation because:182 (A) of the presence of hazardous waste or solid waste; or183 (B) the site lacks sufficient public infrastructure and facilities, including public roads,184 electric service, water system, and sewer system, needed to support development of the site.185 (b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land186 described in Subsection (30)(a).187 (31) (a) "Inactive industrial site" means land that:188 (i) consists of at least 1,000 acres;189 (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial190 facility; and191 (iii) requires remediation because of the presence of hazardous waste or solid waste.192 (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land193 described in Subsection (31)(a).194 (32) "Income targeted housing" means housing that is owned or occupied by a family195 whose annual income is at or below 80% of the median annual income for a family within the196 county in which the housing is located.197 (33) "Incremental value" means a figure derived by multiplying the marginal value of198 the property located within a project area on which tax increment is collected by a number that199 represents the adjusted tax increment from that project area that is paid to the agency.200 (34) "Loan fund board" means the Olene Walker Housing Loan Fund Board,201 established under Title 35A, Chapter 8, Part 5, Olene Walker Housing Loan Fund.202 (35) (a) " Local government building" means a building owned and operated by a203 community for the primary purpose of providing one or more primary community functions,204 including:205 (i) a fire station;206 (ii) a police station;207 (iii) a city hall; or208 (iv) a court or other judicial building.209 (b) " Local government building" does not include a building the primary purpose of210 which is cultural or recreational in nature.211 (36) "Marginal value" means the difference between actual taxable value and base212 taxable value.213 (37) "Military installation project area" means a project area or a portion of a project214 area located within a federal military installation ordered closed by the federal Defense Base215 Realignment and Closure Commission.216 (38) "Municipality" means a city, town, or metro township as defined in Section217 10-2a-403.218 (39) "Participant" means one or more persons that enter into a participation agreement219 with an agency.220 (40) "Participation agreement" means a written agreement between a person and an221 agency that:222 (a) includes a description of:223 (i) the project area development that the person will undertake;224 (ii) the amount of project area funds the person may receive; and225 (iii) the terms and conditions under which the person may receive project area funds;226 and227 (b) is approved by resolution of the board.228 (41) "Plan hearing" means the public hearing on a proposed project area plan required229 under Subsection 17C-2-102(1)(a)(vi) for an urban renewal project area plan, Subsection230 17C-3-102(1)(d) for an economic development project area plan, Subsection 17C-4-102(1)(d)231 for a community development project area plan, or Subsection 17C-5-104(3)(e) for a232 community reinvestment project area plan.233 (42) "Post-June 30, 1993, project area plan" means a project area plan adopted on or234 after July 1, 1993, and before May 10, 2016, whether or not amended subsequent to the project235 area plan's adoption.236 (43) "Pre-July 1, 1993, project area plan" means a project area plan adopted before July237 1, 1993, whether or not amended subsequent to the project area plan's adoption.238 (44) "Private," with respect to real property, means property not owned by a public239 entity or any other governmental entity.240 (45) "Project area" means the geographic area described in a project area plan within241 which the project area development described in the project area plan takes place or is242 proposed to take place.243 (46) "Project area budget" means a multiyear projection of annual or cumulative244 revenues and expenses and other fiscal matters pertaining to a project area prepared in245 accordance with:246 (a) for an urban renewal project area, Section 17C-2-202;247 (b) for an economic development project area, Section 17C-3-202;248 (c) for a community development project area, Section 17C-4-204; or249 (d) for a community reinvestment project area, Section 17C-5-302.250 (47) "Project area development" means activity within a project area that, as251 determined by the board, encourages, promotes, or provides development or redevelopment for252 the purpose of implementing a project area plan, including:253 (a) promoting, creating, or retaining public or private jobs within the state or a254 community;255 (b) providing office, manufacturing, warehousing, distribution, parking, or other256 facilities or improvements;257 (c) planning, designing, demolishing, clearing, constructing, rehabilitating, or258 remediating environmental issues;259 (d) providing residential, commercial, industrial, public, or other structures or spaces,260 including recreational and other facilities incidental or appurtenant to the structures or spaces;261 (e) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating262 existing structures;263 (f) providing open space, including streets or other public grounds or space around264 buildings;265 (g) providing public or private buildings, infrastructure, structures, or improvements;266 (h) relocating a business;267 (i) improving public or private recreation areas or other public grounds;268 (j) eliminating blight or the causes of blight;269 (k) redevelopment as defined under the law in effect before May 1, 2006; or270 (l) any activity described in this Subsection (47) outside of a project area that the board271 determines to be a benefit to the project area.272 (48) "Project area funds" means tax increment or sales and use tax revenue that an273 agency receives under a project area budget adopted by a taxing entity committee or an274 interlocal agreement.275 (49) "Project area funds collection period" means the period of time that:276 (a) begins the day on which the first payment of project area funds is distributed to an277 agency under a project area budget approved by a taxing entity committee or an interlocal278 agreement; and279 (b) ends the day on which the last payment of project area funds is distributed to an280 agency under a project area budget approved by a taxing entity committee or an interlocal281 agreement. 282 (50) "Project area plan" means an urban renewal project area plan, an economic283 development project area plan, a community development project area plan, or a community284 reinvestment project area plan that, after the project area plan's effective date, guides and285 controls the project area development.286 (51) (a) "Property tax" means each levy on an ad valorem basis on tangible or287 intangible personal or real property.288 (b) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4, Privilege289 Tax. 290 (52) "Public entity" means:291 (a) the United States, including an agency of the United States;292 (b) the state, including any of the state's departments or agencies; or293 (c) a political subdivision of the state, including a county, municipality, school district,294 local district, special service district, community reinvestment agency, or interlocal cooperation295 entity.296 (53) "Publicly owned infrastructure and improvements" means water, sewer, storm297 drainage, electrical, natural gas, telecommunication, or other similar systems and lines, streets,298 roads, curb, gutter, sidewalk, walkways, parking facilities, public transportation facilities, or299 other facilities, infrastructure, and improvements benefitting the public and to be publicly300 owned or publicly maintained or operated.301 (54) "Record property owner" or "record owner of property" means the owner of real302 property, as shown on the records of the county in which the property is located, to whom the303 property's tax notice is sent. 304 (55) "Sales and use tax revenue" means revenue that is:305 (a) generated from a tax imposed under Title 59, Chapter 12, Sales and Use Tax Act;306 and307 (b) distributed to a taxing entity in accordance with Sections 59-12-204 and 59-12-205. 308 (56) "Superfund site":309 (a) means an area included in the National Priorities List under the Comprehensive310 Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and311 (b) includes an area formerly included in the National Priorities List, as described in312 Subsection (56)(a), but removed from the list following remediation that leaves on site the313 waste that caused the area to be included in the National Priorities List.314 (57) "Survey area" means a geographic area designated for study by a survey area315 resolution to determine whether:316 (a) one or more project areas within the survey area are feasible; or317 (b) blight exists within the survey area.318 (58) "Survey area resolution" means a resolution adopted by a board that designates a319 survey area.320 (59) "Taxable value" means:321 (a) the taxable value of all real property a county assessor assesses in accordance with322 Title 59, Chapter 2, Part 3, County Assessment, for the current year;323 (b) the taxable value of all real and personal property the commission assesses in324 accordance with Title 59, Chapter 2, Part 2, Assessment of Property, for the current year; and325 (c) the year end taxable value of all personal property a county assessor assesses in326 accordance with Title 59, Chapter 2, Part 3, County Assessment, contained on the prior year's327 tax rolls of the taxing entity. 328 (60) (a) "Tax increment" means the difference between:329 (i) the amount of property tax revenue generated each tax year by a taxing entity from330 the area within a project area designated in the project area plan as the area from which tax331 increment is to be collected, using the current assessed value of the property; and332 (ii) the amount of property tax revenue that would be generated from that same area333 using the base taxable value of the property.334 (b) "Tax increment" does not include taxes levied and collected under Section335 59-2-1602 on or after January 1, 1994, upon the taxable property in the project area unless:336 (i) the project area plan was adopted before May 4, 1993, whether or not the project337 area plan was subsequently amended; and338 (ii) the taxes were pledged to support bond indebtedness or other contractual339 obligations of the agency.340 (61) "Taxing entity" means a public entity that:341 (a) levies a tax on property located within a project area; or342 (b) imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act.343 (62) "Taxing entity committee" means a committee representing the interests of taxing344 entities, created in accordance with Section 17C-1-402.345 (63) "Unincorporated" means not within a municipality.346 (64) "Urban renewal project area plan" means a project area plan adopted under347 Chapter 2, Part 1, Urban Renewal Project Area Plan.348 Section 2. Section 17C-1-102.5 is amended to read:349 17C-1-102.5.Project area created on or after May 10, 2016.350 Beginning on May 10, 2016, an agency:351 (1) may create:352 (a) an economic development project area under Chapter 3, Economic Development; or353 (b) a community reinvestment project area under Chapter 5, Community Reinvestment;354 (2) except as provided in Subsection (3), may not create:355 (a) an urban renewal project area under Chapter 2, Urban Renewal; or356 [(b) an economic development project area under Chapter 3, Economic Development;357 or]358 [(c)] (b) a community development project area under Chapter 4, Community359 Development; and360 (3) may create an urban renewal project area[, an economic development project area,]361 or a community development project area if:362 (a) before April 1, 2016, the agency adopts a resolution in accordance with:363 (i) Section 17C-2-101.5 for an urban renewal project area; or364 [(ii) Section 17C-3-101.5 for an economic development project area; or]365 [(iii)] (ii) Section 17C-4-101.5 for a community development project area; and366 (b) the urban renewal project area[, economic development project area,] or community367 development project area is effective before September 1, 2016. 368 Section 3. Section 17C-1-401.5 is amended to read:369 17C-1-401.5.Agency receipt and use of project area funds -- Distribution of370 project area funds.371 (1) An agency may receive and use project area funds in accordance with this title.372 (2) (a) A county that collects property tax on property located within a project area373 shall, in accordance with Section 59-2-1365, distribute to an agency any tax increment that the374 agency is authorized to receive.375 (b) Tax increment distributed to an agency in accordance with Subsection (2)(a) is not376 revenue of the taxing entity. 377 (c) For an economic development project area plan that an agency adopts after May 9,378 2019, the county in which the agency is located shall withhold tax increment that the agency is379 authorized to receive from the project area until the agency provides the county evidence that380 jobs have been created in accordance with Subsection 17C-3-103(3).381 (3) (a) The project area funds collection period shall be measured:382 (i) for a pre-July 1, 1993, project area plan, from the first tax year regarding which the383 agency accepts tax increment from the project area;384 (ii) for a post-June 30, 1993, urban renewal or economic development project area385 plan:386 (A) with respect to tax increment, from the first tax year for which the agency receives387 tax increment under the project area budget; or388 (B) with respect to sales and use tax revenue, as indicated in the interlocal agreement389 between the agency and the taxing entity that authorizes the agency to receive all or a portion390 of the taxing entity's sales and use tax revenue;391 (iii) for a community development project area plan, as indicated in the resolution or392 interlocal agreement of a taxing entity that authorizes the agency to receive the taxing entity's393 project area funds;394 (iv) for a community reinvestment project area plan that is subject to a taxing entity395 committee:396 (A) with respect to tax increment, from the first tax year for which the agency receives397 tax increment under the project area budget; or398 (B) with respect to sales and use tax revenue, in accordance with the interlocal399 agreement between the agency and the taxing entity that authorizes the agency to receive all or400 a portion of the taxing entity's sales and use tax revenue; [or]401 (v) for a community reinvestment project area plan that is subject to an interlocal402 agreement, in accordance with the interlocal agreement between the agency and the taxing403 entity that authorizes the agency to receive the taxing entity's project area funds[.]; or404 (vi) for an economic development project area plan that an agency adopts after May 10,405 2016, in accordance with the project area budget.406 (b) Unless otherwise provided in a project area budget that is approved by a taxing407 entity committee, or in an interlocal agreement adopted by a taxing entity, tax increment may408 not be paid to an agency for a tax year before the tax year following:409 (i) for an urban renewal project area plan, an economic development project area plan,410 or a community reinvestment project area plan that is subject to a taxing entity committee, the411 effective date of the project area plan; and412 (ii) for a community development [project area plan or a], economic development, or413 community reinvestment project area plan that is subject to an interlocal agreement, the414 effective date of the interlocal agreement that authorizes the agency to receive tax increment.415 (4) With respect to a community development project area plan or a community416 reinvestment project area plan that is subject to an interlocal agreement:417 (a) a taxing entity may, through interlocal agreement, authorize an agency to be paid418 any or all of the taxing entity's project area funds for any period of time; and419 (b) the interlocal agreement authorizing the agency to be paid project area funds shall420 specify:421 (i) the base taxable value of the project area; and422 (ii) the method of calculating the amount of project area funds to be paid to the agency.423 (5) (a) (i) The boundaries of one project area may overlap and include the boundaries424 of another project area.425 (ii) If a taxing entity committee is required to approve the project area budget of an426 overlapping project area described in Subsection (5)(a)(i), the agency shall, before the first427 meeting of the taxing entity committee at which the project area budget will be considered,428 inform each taxing entity of the location of the overlapping boundaries.429 (b) (i) Before an agency may receive tax increment from the newly created overlapping430 portion of a project area, the agency shall inform the county auditor regarding the respective431 amount of tax increment that the agency is authorized to receive from the overlapping portion432 of each of the project areas.433 (ii) The combined amount of tax increment described in Subsection (5)(b)(i) may not434 exceed 100% of the tax increment generated from a property located within the overlapping435 boundaries.436 (c) Nothing in this Subsection (5) gives an agency a right to receive project area funds437 that the agency is not otherwise authorized to receive under this title.438 (d) The collection of project area funds from an overlapping project area described in439 Subsection (5)(a)(i) does not affect an agency's use of project area funds within the other440 overlapping project area.441 (6) With the written consent of a taxing entity, an agency may be paid tax increment,442 from the taxing entity's property tax revenue only, in a higher percentage or for a longer period443 of time, or both, than otherwise authorized under this title.444 (7) Subject to Section 17C-1-407, an agency is authorized to receive tax increment as445 described in:446 (a) for a pre-July 1, 1993, project area plan, Section 17C-1-403;447 (b) for a post-June 30, 1993, project area plan:448 (i) Section 17C-1-404 under a project area budget adopted by the agency in accordance449 with this title;450 (ii) a project area budget approved by the taxing entity committee and adopted by the451 agency in accordance with this title; or452 (iii) Section 17C-1-406;453 (c) a resolution or interlocal agreement entered into under Section 17C-2-207,454 17C-3-206, 17C-4-201, or 17C-4-202;455 (d) for a community reinvestment project area plan that is subject to a taxing entity456 committee, a project area budget approved by the taxing entity committee and adopted by the457 agency in accordance with this title; [or]458 (e) for a community reinvestment project area plan that is subject to an interlocal459 agreement, an interlocal agreement entered into under Section 17C-5-204[.]; or460 (f) for an economic development project area plan that an agency adopts after May 10,461 2016, Chapter 3, Economic Development.462 Section 4. Section 17C-1-402 is amended to read:463 17C-1-402.Taxing entity committee.464 (1) The provisions of this section apply to a taxing entity committee that is created by465 an agency for:466 (a) a post-June 30, 1993, urban renewal project area plan [or economic development467 project area plan];468 (b) any other project area plan adopted before May 10, 2016, for which the agency469 created a taxing entity committee; [and]470 (c) an economic development project area plan; and471 [(c)] (d) a community reinvestment project area plan that is subject to a taxing entity472 committee.473 (2) (a) (i) Each taxing entity committee shall be composed of:474 (A) two school district representatives appointed in accordance with Subsection475 (2)(a)(ii);476 (B) (I) in a county of the second, third, fourth, fifth, or sixth class, two representatives477 appointed by resolution of the legislative body of the county in which the agency is located; or478 (II) in a county of the first class, one representative appointed by the county executive479 and one representative appointed by the legislative body of the county in which the agency is480 located;481 (C) if the agency is created by a municipality, two representatives appointed by482 resolution of the legislative body of the municipality;483 (D) one representative appointed by the State Board of Education; and484 (E) one representative selected by majority vote of the legislative bodies or governing485 boards of all other taxing entities that levy a tax on property within the agency's boundaries, to486 represent the interests of those taxing entities on the taxing entity committee.487 (ii) (A) If the agency boundaries include only one school district, that school district488 shall appoint the two school district representatives under Subsection (2)(a)(i)(A).489 (B) If the agency boundaries include more than one school district, those school490 districts shall jointly appoint the two school district representatives under Subsection491 (2)(a)(i)(A).492 (b) (i) Each taxing entity committee representative described in Subsection (2)(a) shall493 be appointed within 30 days after the day on which the agency provides notice of the creation494 of the taxing entity committee.495 (ii) If a representative is not appointed within the time required under Subsection496 (2)(b)(i), the board may appoint an individual to serve on the taxing entity committee in the497 place of the missing representative until that representative is appointed.498 (c) (i) A taxing entity committee representative may be appointed for a set term or499 period of time, as determined by the appointing authority under Subsection (2)(a)(i).500 (ii) Each taxing entity committee representative shall serve until a successor is501 appointed and qualified.502 (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether503 an initial appointment or an appointment to replace an already serving representative, the504 appointing authority shall:505 (A) notify the agency in writing of the name and address of the newly appointed506 representative; and507 (B) provide the agency a copy of the resolution making the appointment or, if the508 appointment is not made by resolution, other evidence of the appointment.509 (ii) Each appointing authority of a taxing entity committee representative under510 Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a511 representative appointed by that appointing authority.512 (3) At a taxing entity committee's first meeting, the taxing entity committee shall adopt513 an organizing resolution that:514 (a) designates a chair and a secretary of the taxing entity committee; and515 (b) if the taxing entity committee considers it appropriate, governs the use of electronic516 meetings under Section 52-4-207.517 (4) (a) A taxing entity committee represents all taxing entities regarding:518 (i) an urban renewal project area plan;519 (ii) an economic development project area plan that is subject to a taxing entity520 committee; or521 (iii) a community reinvestment project area plan that is subject to a taxing entity522 committee.523 (b) A taxing entity committee may:524 (i) cast votes that are binding on all taxing entities;525 (ii) negotiate with the agency concerning a proposed project area plan;526 (iii) approve or disapprove:527 (A) an urban renewal project area budget as described in Section 17C-2-204;528 (B) for an economic development project area plan that is subject to a taxing entity529 committee, an economic development project area budget as described in Section 17C-3-203;530 or531 (C) for a community reinvestment project area plan that is subject to a taxing entity532 committee, a community reinvestment project area budget as described in Section 17C-5-302; 533 (iv) approve or disapprove an amendment to a project area budget as described in534 Section 17C-2-206, 17C-3-205, or 17C-5-306; 535 (v) approve an exception to the limits on the value and size of a project area imposed536 under this title;537 (vi) approve:538 (A) an exception to the percentage of tax increment to be paid to the agency;539 (B) except for a project area funds collection period that is approved by an interlocal540 agreement, each project area funds collection period; and541 (C) an exception to the requirement for an urban renewal project area budget, an542 economic development project area budget, or a community reinvestment project area budget543 to include a maximum cumulative dollar amount of tax increment that the agency may receive;544 (vii) approve the use of tax increment for publicly owned infrastructure and545 improvements outside of a project area that the agency and community legislative body546 determine to be of benefit to the project area, as described in Subsection547 17C-1-409(1)(a)(iii)(D);548 (viii) waive the restrictions described in Subsection 17C-2-202(1);549 (ix) subject to Subsection (4)(c), designate the base taxable value for a project area550 budget; and551 (x) give other taxing entity committee approval or consent required or allowed under552 this title.553 (c) (i) Except as provided in Subsection (4)(c)(ii), the base year may not be a year that554 is earlier than five years before the beginning of a project area funds collection period.555 (ii) The taxing entity committee may approve a base year that is earlier than the year556 described in Subsection (4)(c)(i).557 (5) A quorum of a taxing entity committee consists of:558 (a) if the project area is located within a municipality, five members; or559 (b) if the project area is not located within a municipality, four members.560 (6) Taxing entity committee approval, consent, or other action requires:561 (a) the affirmative vote of a majority of all members present at a taxing entity562 committee meeting:563 (i) at which a quorum is present; and564 (ii) considering an action relating to a project area budget for, or approval of a finding565 of blight within, a project area or proposed project area that contains:566 (A) an inactive industrial site;567 (B) an inactive airport site; or568 (C) a closed military base; or569 (b) for any other action not described in Subsection (6)(a)(ii), the affirmative vote of570 two-thirds of all members present at a taxing entity committee meeting at which a quorum is571 present.572 (7) (a) An agency may call a meeting of the taxing entity committee by sending written573 notice to the members of the taxing entity committee at least 10 days before the date of the574 meeting.575 (b) Each notice under Subsection (7)(a) shall be accompanied by:576 (i) the proposed agenda for the taxing entity committee meeting; and577 (ii) if not previously provided and if the documents exist and are to be considered at578 the meeting:579 (A) the project area plan or proposed project area plan;580 (B) the project area budget or proposed project area budget;581 (C) the analysis required under Subsection 17C-2-103(2), 17C-3-103(2), or582 17C-5-105(12);583 (D) the blight study;584 (E) the agency's resolution making a finding of blight under Subsection585 17C-2-102(1)(a)(ii)(B) or Subsection 17C-5-402(2)(c)(ii); and586 (F) other documents to be considered by the taxing entity committee at the meeting.587 (c) (i) An agency may not schedule a taxing entity committee meeting on a day on588 which the Legislature is in session.589 (ii) Notwithstanding Subsection (7)(c)(i), a taxing entity committee may, by unanimous590 consent, waive the scheduling restriction described in Subsection (7)(c)(i).591 (8) (a) A taxing entity committee may not vote on a proposed project area budget or592 proposed amendment to a project area budget at the first meeting at which the proposed project593 area budget or amendment is considered unless all members of the taxing entity committee594 present at the meeting consent.595 (b) A second taxing entity committee meeting to consider a proposed project area596 budget or a proposed amendment to a project area budget may not be held within 14 days after597 the first meeting unless all members of the taxing entity committee present at the first meeting598 consent.599 (9) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and600 Public Meetings Act.601 (10) A taxing entity committee's records shall be:602 (a) considered the records of the agency that created the taxing entity committee; and603 (b) maintained by the agency in accordance with Section 17C-1-209.604 (11) Each time a school district representative or a representative of the State Board of605 Education votes as a member of a taxing entity committee to allow an agency to receive tax606 increment, to increase the amount of tax increment the agency receives, or to extend a project607 area funds collection period, that representative shall, within 45 days after the vote, provide to608 the representative's respective school board an explanation in writing of the representative's609 vote and the reasons for the vote.610 (12) (a) The auditor of each county in which an agency is located shall provide a611 written report to the taxing entity committee stating, with respect to property within each612 project area:613 (i) the base taxable value, as adjusted by any adjustments under Section 17C-1-408;614 and615 (ii) the assessed value.616 (b) With respect to the information required under Subsection (12)(a), the auditor shall617 provide:618 (i) actual amounts for each year from the adoption of the project area plan to the time619 of the report; and620 (ii) estimated amounts for each year beginning the year after the time of the report and621 ending the time that each project area funds collection period ends.622 (c) The auditor of the county in which the agency is located shall provide a report623 under this Subsection (12):624 (i) at least annually; and625 (ii) upon request of the taxing entity committee, before a taxing entity committee626 meeting at which the committee considers whether to allow the agency to receive tax627 increment, to increase the amount of tax increment that the agency receives, or to extend a628 project area funds collection period.629 (13) This section does not apply to:630 (a) a community development project area plan; or631 (b) a community reinvestment project area plan that is subject to an interlocal632 agreement.633 (14) (a) A taxing entity committee resolution approving a blight finding, approving a634 project area budget, or approving an amendment to a project area budget:635 (i) is final; and636 (ii) is not subject to repeal, amendment, or reconsideration unless the agency first637 consents by resolution to the proposed repeal, amendment, or reconsideration.638 (b) The provisions of Subsection (14)(a) apply regardless of when the resolution is639 adopted.640 Section 5. Section 17C-1-405 is amended to read:641 17C-1-405.Tax increment under a project area plan adopted on or after May 1,642 2006.643 (1) This section applies to tax increment under [a]:644 (a) an urban renewal project area plan adopted on or after May 1, 2006, and before645 May 10, 2016[.]; and646 (b) an economic development project area plan adopted on or after May 1, 2006, that is647 subject to a taxing entity committee.648 (2) Subject to the approval of the taxing entity committee, a board may provide in the649 urban renewal or economic development project area budget for the agency to be paid:650 (a) for an urban renewal project area plan that proposes development of an inactive651 industrial site or inactive airport site, at least 60% of tax increment for at least 20 years; or652 (b) for each other project, any percentage of tax increment up to 100% or any specified653 dollar amount of tax increment for any period of time.654 (3) A resolution or interlocal agreement relating to an agency's use of tax increment for655 a community development project area plan may provide for the agency to be paid any656 percentage of tax increment up to 100% or any specified dollar amount of tax increment for657 any period of time.658 Section 6. Section 17C-1-407 is amended to read:659 17C-1-407.Limitations on tax increment.660 (1) (a) If the development of retail sales of goods is the primary objective of an urban661 renewal project area, tax increment from the urban renewal project area may not be paid to or662 used by an agency unless a finding of blight is made under Chapter 2, Part 3, Blight663 Determination in Urban Renewal Project Areas.664 (b) Development of retail sales of goods does not disqualify an agency from receiving665 tax increment.666 (c) After July 1, 2005, an agency may not receive or use tax increment generated from667 the value of property within an economic development project area that is attributable to the668 development of retail sales of goods, unless the tax increment was previously pledged to pay669 for bonds or other contractual obligations of the agency.670 (2) (a) An agency with a project area plan that is subject to a taxing entity committee671 may not be paid any portion of a taxing entity's taxes resulting from an increase in the taxing672 entity's tax rate that occurs after the taxing entity committee or each taxing entity that is a party673 to an interlocal agreement with the agency approves the project area budget unless, at the time674 [the taxing entity committee approves] of the approval of the project area budget, the taxing675 entity committee or each taxing entity that is a party to an interlocal agreement with the agency676 approves payment of those increased taxes to the agency.677 (b) If the taxing entity committee or each taxing entity that is a party to an interlocal678 agreement with the agency does not approve payment of the increased taxes to the agency679 under Subsection (2)(a), the county shall distribute to the taxing entity the taxes attributable to680 the tax rate increase in the same manner as other property taxes.681 (c) Notwithstanding any other provision of this section, if, before tax year 2013,682 increased taxes are paid to an agency without the approval of the taxing entity committee or683 each taxing entity that is a party to an interlocal agreement with the agency, and684 notwithstanding the law at the time that the tax was collected or increased:685 (i) the State Tax Commission, the county as the collector of the taxes, a taxing entity,686 or any other person or entity may not recover, directly or indirectly, the increased taxes from687 the agency by adjustment of a tax rate used to calculate tax increment or otherwise;688 (ii) the county is not liable to a taxing entity or any other person or entity for the689 increased taxes that were paid to the agency; and690 (iii) tax increment, including the increased taxes, shall continue to be paid to the691 agency subject to the same number of tax years, percentage of tax increment, and cumulative692 dollar amount of tax increment as approved in the project area budget and previously paid to693 the agency.694 (3) Except as the taxing entity committee or each taxing entity that is a party to an695 interlocal agreement with the agency otherwise agrees, an agency may not receive tax696 increment under an urban renewal or economic development project area budget adopted on or697 after March 30, 2009:698 (a) that exceeds the percentage of tax increment or cumulative dollar amount of tax699 increment specified in the project area budget; or700 (b) for more tax years than specified in the project area budget.701 Section 7. Section 17C-1-412 is amended to read:702 17C-1-412.Use of housing allocation -- Separate accounting required -- Issuance703 of bonds for housing -- Action to compel agency to provide housing allocation.704 (1) (a) An agency shall use the agency's housing allocation, if applicable, to:705 (i) pay part or all of the cost of land or construction of income targeted housing within706 the boundary of the agency, if practicable in a mixed income development or area;707 (ii) pay part or all of the cost of rehabilitation of income targeted housing within the708 boundary of the agency;709 (iii) lend, grant, or contribute money to a person, public entity, housing authority,710 private entity or business, or nonprofit corporation for income targeted housing within the711 boundary of the agency;712 (iv) plan or otherwise promote income targeted housing within the boundary of the713 agency;714 (v) pay part or all of the cost of land or installation, construction, or rehabilitation of715 any building, facility, structure, or other housing improvement, including infrastructure716 improvements, related to housing located in a project area where blight has been found to exist;717 (vi) replace housing units lost as a result of the project area development;718 (vii) make payments on or establish a reserve fund for bonds:719 (A) issued by the agency, the community, or the housing authority that provides720 income targeted housing within the community; and721 (B) all or part of the proceeds of which are used within the community for the purposes722 stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);723 (viii) if the community's fair share ratio at the time of the first adoption of the project724 area budget is at least 1.1 to 1.0, make payments on bonds:725 (A) that were previously issued by the agency, the community, or the housing authority726 that provides income targeted housing within the community; and727 (B) all or part of the proceeds of which were used within the community for the728 purposes stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);729 (ix) relocate mobile home park residents displaced by project area development; or730 (x) subject to Subsection (6), transfer funds to a community that created the agency.731 (b) As an alternative to the requirements of Subsection (1)(a), an agency may pay all or732 any portion of the agency's housing allocation to:733 (i) the community for use as described in Subsection (1)(a);734 (ii) a housing authority that provides income targeted housing within the community735 for use in providing income targeted housing within the community;736 (iii) a housing authority established by the county in which the agency is located for737 providing:738 (A) income targeted housing within the county;739 (B) permanent housing, permanent supportive housing, or a transitional facility, as740 defined in Section 35A-5-302, within the county; or741 (C) homeless assistance within the county; or 742 (iv) the Olene Walker Housing Loan Fund, established under Title 35A, Chapter 8,743 Part 5, Olene Walker Housing Loan Fund, for use in providing income targeted housing within744 the community.745 (2) (a) The agency shall create a housing fund and separately account for the agency's746 housing allocation, together with all interest earned by the housing allocation and all payments747 or repayments for loans, advances, or grants from the housing allocation.748 (b) An agency that creates a housing fund described in Subsection (2)(a):749 (i) shall dedicate or expend the agency's housing allocation for a use described in750 Subsection (1); and751 (ii) may not accumulate a fund balance that exceeds the agency's housing allocations752 for the previous two years unless funds are reserved for a purpose identified in the agency's753 affordable housing plan.754 (3) An agency may:755 (a) issue bonds to finance a housing-related project under this section, including the756 payment of principal and interest upon advances for surveys and plans or preliminary loans;757 and758 (b) issue refunding bonds for the payment or retirement of bonds under Subsection759 (3)(a) previously issued by the agency.760 (4) (a) Except as provided in Subsection (4)(b), [an] if a project area budget requires an761 agency to make a housing allocation, the agency shall allocate money to the housing fund each762 year in which the agency receives sufficient tax increment to make [a] the housing allocation763 [required by the project area budget].764 (b) Subsection (4)(a) does not apply in a year in which tax increment is insufficient.765 (5) (a) Except as provided in Subsection (4)(b), if an agency fails to provide a housing766 allocation [in accordance with] that the project area budget requires and, if applicable, the767 housing plan adopted under Subsection 17C-2-204(2), the loan fund board may bring legal768 action to compel the agency to provide the housing allocation.769 (b) In an action under Subsection (5)(a), the court:770 (i) shall award the loan fund board reasonable attorney fees, unless the court finds that771 the action was frivolous; and772 (ii) may not award the agency the agency's attorney fees, unless the court finds that the773 action was frivolous.774 (6) For the purpose of offsetting the community's annual local contribution to the775 Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in776 a calendar year to a community under Subsections (1)(a)(x), 17C-1-409(1)(a)(v), and777 17C-1-411(1)(d) may not exceed the community's annual local contribution as defined in778 Section 35A-8-606.779 (7) (a) If the community that created the agency is a municipality, the community shall780 create an affordable housing plan in accordance with this Subsection (7).781 (b) (i) A community described in Subsection (7)(a) shall ensure that the affordable782 housing plan that the community creates includes:783 (A) an estimate of the need for the development of additional moderate income784 housing within the community; and785 (B) a plan to provide an opportunity to meet the estimated needs described in786 Subsection (7)(b)(i)(A) if long-term projections for land use and development occur.787 (ii) The community may include the following in the affordable housing plan:788 (A) existing housing rehabilitation within the boundaries of the project area;789 (B) homeless service offerings within the boundaries of the project area;790 (C) contribution to or utilization of the statewide Olene Walker Housing Loan Fund,791 created in Section 35A-8-502;792 (D) contribution to or utilization of a county-wide affordable housing fund;793 (E) federal low-income housing tax credits described in Section 42, Internal Revenue794 Code;795 (F) housing projects under programs like the United States Department of Housing and796 Urban Development's Community Development Block Grant Program;797 (G) donations to municipal and county housing services; and798 (H) contributions to statewide funding of homeless resource centers.799 (c) In drafting the moderate income housing plan, the community:800 (i) shall consider the legislative determination that cities facilitate a reasonable801 opportunity for a variety of housing, including moderate income housing:802 (A) to meet the needs of people desiring to live in the community; and803 (B) to allow individuals with moderate incomes to benefit from and fully participate in804 all aspects of neighborhood and community life;805 (ii) may recommend means and techniques for providing a realistic opportunity for the806 development of moderate income housing, including:807 (A) rezoning for densities necessary to assure the production of moderate income808 housing;809 (B) facilitating the rehabilitation or expansion of infrastructure that will encourage the810 construction of moderate income housing;811 (C) encouraging the rehabilitation of existing uninhabitable housing stock into812 moderate income housing;813 (D) considering general fund subsidies to waive construction-related fees that are814 otherwise generally imposed by the city;815 (E) considering utilization of state or federal funds or tax incentives to promote the816 construction of moderate income housing;817 (F) considering utilization of programs offered by the Utah Housing Corporation,818 created in Section 63H-8-201, within that agency's funding capacity; and819 (G) considering utilization of affordable housing programs administered by the820 Department of Workforce Services; and821 (iii) may include an analysis of why any recommendation described in Subsection822 (7)(c)(ii) provides a realistic opportunity for the development of moderate income housing823 within the planning horizon.824 Section 8. Section 17C-1-603 is amended to read:825 17C-1-603.Annual report.826 (1) Beginning in 2016, on or before November 1 of each year, an agency shall:827 (a) prepare an annual report as described in Subsection (2);828 (b) submit the annual report electronically to the community in which the agency829 operates, the county auditor, the State Tax Commission, the State Board of Education, and each830 taxing entity from which the agency receives project area funds;831 (c) post the annual report on the agency's website; and832 (d) ensure that the community in which the agency operates posts the annual report on833 the community's website. 834 (2) The annual report shall, for each active project area whose project area funds835 collection period has not expired, contain the following information:836 (a) an assessment of the change in marginal value, including:837 (i) the base year;838 (ii) the base taxable value;839 (iii) the prior year's assessed value;840 (iv) the estimated current assessed value;841 (v) the percentage change in marginal value; and842 (vi) a narrative description of the relative growth in assessed value;843 (b) the amount of project area funds the agency received for each year of the project844 area funds collection period, including:845 (i) a comparison of the actual project area funds received for each year to the amount of846 project area funds forecasted for each year when the project area was created, if available;847 (ii) (A) the agency's historical receipts of project area funds, including the tax year for848 which the agency first received project area funds from the project area; or849 (B) if the agency has not yet received project area funds from the project area, the year850 in which the agency expects each project area funds collection period to begin;851 (iii) a list of each taxing entity that levies or imposes a tax within the project area and a852 description of the benefits that each taxing entity receives from the project area; and853 (iv) the amount paid to other taxing entities under Section 17C-1-410, if applicable;854 (c) a description of how the agency expended the agency's housing allocation, if855 applicable;856 [(c)] (d) a description of current and anticipated project area development, including:857 (i) a narrative of any significant project area development, including infrastructure858 development, site development, participation agreements, or vertical construction; and859 (ii) other details of development within the project area, including:860 (A) the total developed acreage;861 (B) the total undeveloped acreage;862 (C) the percentage of residential development; and863 (D) the total number of housing units authorized, if applicable;864 [(d)] (e) the project area budget , if applicable, or other project area funds analyses,865 including: 866 (i) each project area funds collection period, including:867 (A) the start and end date of the project area funds collection period; and868 (B) the number of years remaining in each project area funds collection period;869 (ii) the amount of project area funds the agency is authorized to receive from the870 project area cumulatively and from each taxing entity, including:871 (A) the total dollar amount; and872 (B) the percentage of the total amount of project area funds generated within the873 project area;874 (iii) the remaining amount of project area funds the agency is authorized to receive875 from the project area cumulatively and from each taxing entity; and876 (iv) the amount of project area funds the agency is authorized to use to pay for the877 agency's administrative costs, as described in Subsection [17B-1-409] 17C-1-409(1), including:878 (A) the total dollar amount; and879 (B) the percentage of the total amount of all project area funds;880 [(e)] (f) the estimated amount of project area funds that the agency is authorized to881 receive from the project area for the current calendar year; 882 [(f)] (g) the estimated amount of project area funds to be paid to the agency for the next883 calendar year;884 [(g)] (h) a map of the project area; and885 [(h)] (i) any other relevant information the agency elects to provide.886 (3) A report prepared in accordance with this section:887 (a) is for informational purposes only; and888 (b) does not alter the amount of project area funds that an agency is authorized to889 receive from a project area.890 (4) The provisions of this section apply regardless of when the agency or project area is891 created.892 Section 9. Section 17C-1-806 is amended to read:893 17C-1-806.Requirements for notice provided by agency.894 (1) The notice required by Section 17C-1-805 shall be given by:895 (a) (i) publishing one notice, excluding the map referred to in Subsection (3)(b), in a896 newspaper of general circulation within the county in which the project area or proposed897 project area is located, at least 14 days before the hearing;898 (ii) if there is no newspaper of general circulation, posting notice at least 14 days899 before the day of the hearing in at least three conspicuous places within the county in which the900 project area or proposed project area is located; or901 (iii) posting notice, excluding the map described in Subsection (3)(b), at least 14 days902 before the day on which the hearing is held on:903 (A) the Utah Public Notice Website described in Section 63F-1-701; and904 (B) the public website of a community located within the boundaries of the project905 area; and906 (b) at least 30 days before the hearing, mailing notice to:907 (i) each record owner of property located within the project area or proposed project908 area;909 (ii) the State Tax Commission;910 (iii) the assessor and auditor of the county in which the project area or proposed project911 area is located; and912 (iv) (A) if a project area is subject to a taxing entity committee, each member of the913 taxing entity committee and the State Board of Education; or914 (B) if a project area is not subject to a taxing entity committee, the legislative body or915 governing board of each taxing entity within the boundaries of the project area or proposed916 project area.917 (2) The mailing of the notice to record property owners required under Subsection918 (1)(b)(i) shall be conclusively considered to have been properly completed if:919 (a) the agency mails the notice to the property owners as shown in the records,920 including an electronic database, of the county recorder's office and at the addresses shown in921 those records; and922 (b) the county recorder's office records used by the agency in identifying owners to923 whom the notice is mailed and their addresses were obtained or accessed from the county924 recorder's office no earlier than 30 days before the mailing.925 (3) The agency shall include in each notice required under Section 17C-1-805:926 (a) (i) a boundary description of the project area or proposed project area; or927 (ii) (A) a mailing address or telephone number where a person may request that a copy928 of the boundary description be sent at no cost to the person by mail, email, or facsimile929 transmission; and930 (B) if the agency or community has an Internet website, an Internet address where a931 person may gain access to an electronic, printable copy of the boundary description and other932 related information;933 (b) a map of the boundaries of the project area or proposed project area;934 (c) an explanation of the purpose of the hearing; and935 (d) a statement of the date, time, and location of the hearing.936 (4) The agency shall include in each notice under Subsection (1)(b):937 (a) a statement that property tax revenue resulting from an increase in valuation of938 property within the project area or proposed project area will be paid to the agency for project939 area development rather than to the taxing entity to which the tax revenue would otherwise940 have been paid if:941 (i) (A) for a project area plan that is subject to a taxing entity committee, the taxing942 entity committee consents to the project area budget; or943 (B) one or more taxing entities agree to share property tax revenue under an interlocal944 agreement and each taxing entity that is party to the interlocal agreement consents; and945 (ii) the project area plan provides for the agency to receive tax increment; and946 (b) an invitation to the recipient of the notice to submit to the agency comments947 concerning the subject matter of the hearing before the date of the hearing.948 (5) An agency may include in a notice under Subsection (1) any other information the949 agency considers necessary or advisable, including the public purpose achieved by the project950 area development and any future tax benefits expected to result from the project area951 development.952 Section 10. Section 17C-2-203 is amended to read:953 17C-2-203.Part of tax increment funds in urban renewal project area budget to954 be used for housing -- Waiver of requirement.955 (1) (a) Except as provided in [Subsections (1)(b) and (c)] Subsection (1)(b), each urban956 renewal project area budget adopted on or after May 1, 2000, that provides for more than957 $100,000 of annual tax increment to be paid to the agency shall allocate at least 20% of the tax958 increment for housing as provided in Section 17C-1-412.959 [(b) The 20% requirement of Subsection (1)(a) may be waived in part or whole by the960 taxing entity committee if the taxing entity committee determines that 20% of tax increment is961 more than is needed to address the community's need for income targeted housing.]962 [(c)] (b) An agency is not subject to the 20% requirement described in Subsection963 (1)(a) if:964 (i) an inactive industrial site is located within an urban renewal project area; and965 (ii) the inactive industrial site's remediation costs are estimated to exceed 20% of the966 project area funds under the urban renewal project area budget. 967 (2) An urban renewal project area budget not required under Subsection (1)(a) to968 allocate tax increment for housing may allocate 20% of tax increment received by the agency969 over the life of the project area for housing as provided in Section 17C-1-412 if the project area970 budget is under a project area plan that is adopted on or after July 1, 1998.971 Section 11. Section 17C-3-103 is amended to read:972 17C-3-103.Economic development project area plan requirements.973 (1) Each economic development project area plan and proposed project area plan shall:974 (a) describe the boundaries of the project area, subject to Section 17C-1-414, if975 applicable;976 (b) contain a general statement of the land uses, layout of principal streets, population977 densities, and building intensities of the project area and how they will be affected by the978 project area development;979 (c) state the standards that will guide the project area development;980 (d) show how the purposes of this title will be attained by the project area981 development;982 (e) be consistent with the general plan of the community in which the project area is983 located and show that the project area development will conform to the community's general984 plan;985 (f) describe how the project area development will create additional jobs in accordance986 with Subsection (3), if applicable;987 (g) describe any specific project or projects that are the object of the proposed project988 area development;989 (h) identify how a participant will be selected to undertake the project area990 development and identify each participant currently involved in the project area development;991 (i) state the reasons for the selection of the project area;992 (j) describe the physical, social, and economic conditions existing in the project area;993 (k) describe any tax incentives offered private entities for facilities located in the994 project area;995 (l) include an analysis, as provided in Subsection (2), of whether adoption of the996 project area plan is beneficial under a benefit analysis;997 (m) if any of the existing buildings or uses in the project area are included in or eligible998 for inclusion in the National Register of Historic Places or the State Register, state that the999 agency shall comply with Subsection 9-8-404(1) as though the agency were a state agency; and1000 (n) include other information that the agency determines to be necessary or advisable.1001 (2) Each analysis under Subsection (1)(l) shall consider:1002 (a) the benefit of any financial assistance or other public subsidy proposed to be1003 provided by the agency, including:1004 (i) an evaluation of the reasonableness of the costs of project area development;1005 (ii) efforts the agency or participant has made or will make to maximize private1006 investment;1007 (iii) the rationale for use of tax increment, including an analysis of whether the1008 proposed project area development might reasonably be expected to occur in the foreseeable1009 future solely through private investment; and1010 (iv) an estimate of the total amount of tax increment that will be expended in1011 undertaking project area development and the length of time for which it will be expended; and1012 (b) the anticipated public benefit to be derived from the project area development,1013 including:1014 (i) the beneficial influences upon the tax base of the community;1015 (ii) the associated business and economic activity likely to be stimulated; [and]1016 (iii) the number of jobs or employment anticipated to be generated or preserved[.]; and1017 (iv) the salary associated with any jobs generated or preserved.1018 (3) For an economic development project area plan adopted after May 9, 2019, an1019 agency shall require that project area development under the plan creates at least 50 new jobs1020 that pay a salary that is 150% of area median income for the county in which the agency is1021 located.1022 Section 12. Section 17C-3-109 is amended to read:1023 17C-3-109.Amending an economic development project area plan.1024 (1) An economic development project area plan may be amended as provided in this1025 section.1026 (2) If an agency proposes to amend an economic development project area plan to1027 enlarge the project area:1028 (a) the requirements under this part that apply to adopting a project area plan apply1029 equally to the proposed amendment as if it were a proposed project area plan;1030 (b) the base year for the new area added to the project area shall be determined under1031 Subsection 17C-1-102(9) using the date of the taxing entity committee's consent [referred to]1032 or the taxing entities' consent described in Subsection (2)(c); and1033 (c) the agency shall obtain the consent of the taxing entity committee or each taxing1034 entity that is party to an interlocal agreement with the agency before the agency may collect tax1035 increment from the area added to the project area by the amendment.1036 (3) If a proposed amendment does not propose to enlarge an economic development 1037 project area, a board may adopt a resolution approving an amendment to an economic1038 development project area plan after:1039 (a) the agency gives notice, as provided in Chapter 1, Part 8, Hearing and Notice1040 Requirements, of the proposed amendment and of the public hearing required by Subsection1041 (3)(b);1042 (b) the board holds a public hearing on the proposed amendment that meets the1043 requirements of a plan hearing;1044 (c) the agency obtains the taxing entity committee's consent to the amendment or the1045 consent of each taxing entity that is party to an interlocal agreement with the agency, if the1046 amendment proposes:1047 (i) to enlarge the area within the project area from which tax increment is received; or1048 (ii) to permit the agency to receive a greater percentage of tax increment or to extend1049 the project area funds collection period under the economic development project area plan; and1050 (d) the agency obtains the consent of the legislative body or governing board of each1051 taxing entity affected, if the amendment proposes to permit the agency to receive, from less1052 than all taxing entities, a greater percentage of tax increment or to extend the project area funds1053 collection period, or both, than allowed under the economic development project area plan.1054 (4) (a) An economic development project area plan may be amended without1055 complying with the notice and public hearing requirements of Subsections (2)(a) and (3)(a) and1056 (b) and without obtaining [taxing entity committee approval] consent under Subsection (3)(c) if1057 the amendment:1058 (i) makes a minor adjustment in the boundary description of a project area boundary1059 requested by a county assessor or county auditor to avoid inconsistent property boundary lines;1060 or1061 (ii) subject to Subsection (4)(b), removes one or more parcels from a project area1062 because the agency determines that each parcel removed is:1063 (A) tax exempt; or1064 (B) no longer necessary or desirable to the project area.1065 (b) An amendment removing one or more parcels from a project area under Subsection1066 (4)(a) may be made without the consent of the record property owner of each parcel being1067 removed.1068 (5) (a) An amendment approved by board resolution under this section may not take1069 effect until adopted by ordinance of the legislative body of the community in which the project1070 area that is the subject of the project area plan being amended is located.1071 (b) Upon a community legislative body passing an ordinance adopting an amendment1072 to a project area plan, the agency whose project area plan was amended shall comply with the1073 requirements of Sections 17C-3-107 and 17C-3-108 to the same extent as if the amendment1074 were a project area plan.1075 (6) (a) Within 30 days after the day on which an amendment to a project area plan1076 becomes effective, a person may contest the amendment to the project area plan or the1077 procedure used to adopt the amendment to the project area plan if the amendment or procedure1078 fails to comply with a provision of this title.1079 (b) After the 30-day period described in Subsection (6)(a) expires, a person may not1080 contest the amendment to the project area plan or procedure used to adopt the amendment to1081 the project area plan for any cause.1082 Section 13. Section 17C-3-201 is amended to read:1083 17C-3-201.Economic development project area budget -- Requirements for1084 adopting -- Contesting the budget or procedure -- Time limit.1085 (1) (a) If an agency anticipates funding all or a portion of [a post-June 30, 1993] an1086 economic development project area plan with tax increment, the agency shall, subject to1087 Section 17C-3-202, adopt a project area budget as provided in this part.1088 (b) An economic development project area budget adopted on or after March 30, 2009,1089 shall specify:1090 (i) for a project area budget adopted on or after March 30, 2009:1091 (A) the project area funds collection period; and1092 (B) the percentage of tax increment the agency is authorized to receive from the project1093 area under the project area budget; and1094 (ii) for a project area budget adopted on or after March 30, 2013, unless approval is1095 obtained under Subsection 17C-1-402(4)(b)(vi)(C), the maximum cumulative dollar amount of1096 tax increment that the agency may receive from the project area under the project area budget.1097 (2) To adopt an economic development project area budget, the agency shall:1098 (a) prepare a proposed economic development project area budget;1099 (b) make a copy of the proposed project area budget available to the public at the1100 agency's offices during normal business hours;1101 (c) provide notice of the budget hearing as required by Chapter 1, Part 8, Hearing and1102 Notice Requirements;1103 (d) hold a public hearing on the proposed project area budget and, at that public1104 hearing, allow public comment on:1105 (i) the proposed project area budget; and1106 (ii) whether the proposed project area budget should be revised, adopted, or rejected;1107 (e) (i) if required under Subsection 17C-3-203(1), obtain the approval of the taxing1108 entity committee on the proposed project area budget or a revised version of the proposed1109 project area budget; or1110 (ii) if applicable, comply with the requirements of Subsection 17C-3-203(2);1111 (f) if required under Subsection 17C-3-203(3), obtain approval on the proposed project1112 area budget or a revised version of the proposed project area budget from each taxing entity1113 that is party to an interlocal agreement with the agency;1114 [(f)] (g) if approval of the taxing entity committee is required under Subsection1115 (2)(e)(i) or if approval of each taxing entity is required under Subsection (2)(f), obtain a written1116 certification, signed by an attorney licensed to practice law in this state, stating that the taxing1117 entity committee followed the appropriate procedures to approve the project area budget; and1118 [(g)] (h) after the budget hearing, hold a board meeting in the same meeting as the1119 public hearing or in a subsequent meeting to:1120 (i) consider comments made and information presented at the public hearing relating to1121 the proposed project area budget; and1122 (ii) adopt by resolution the proposed project area budget, with any revisions, as the1123 project area budget.1124 (3) (a) For a period of 30 days after the agency's adoption of the project area budget1125 under Subsection (2)[(g)](h), any person may contest the project area budget or the procedure1126 used to adopt the project area budget if the budget or procedure fails to comply with applicable1127 statutory requirements.1128 (b) After the 30-day period under Subsection (3)(a) expires, a person may not contest:1129 (i) the project area budget or procedure used by either the taxing entity committee, a1130 taxing entity committee that is party to an interlocal agreement with the agency, or the agency1131 to approve and adopt the project area budget;1132 (ii) a distribution of tax increment to the agency under the project area budget; or1133 (iii) the agency's use of tax increment under the project area budget.1134 Section 14. Section 17C-3-203 is amended to read:1135 17C-3-203.Consent of taxing entity committee required for economic1136 development project area budget -- Exception.1137 (1) (a) Except as provided in Subsection (1)(b) or (3) and subject to Subsection (2),1138 each agency shall obtain the consent of the taxing entity committee for each economic1139 development project area budget under a post-June 30, 1993, economic development project1140 area plan before the agency may collect any tax increment from the project area.1141 (b) For an economic development project area budget adopted from July 1, 1998,1142 through May 1, 2000, that allocates 20% or more of the tax increment for housing as provided1143 in Section 17C-1-412, an agency:1144 (i) need not obtain the consent of the taxing entity committee for the project area1145 budget; and1146 (ii) may not receive any tax increment from all or part of the project area until after:1147 (A) the loan fund board has certified the project area budget as complying with the1148 requirements of Section 17C-1-412; and1149 (B) the board has approved and adopted the project area budget by a two-thirds vote.1150 (2) (a) Before a taxing entity committee may consent to an economic development1151 project area budget adopted on or after May 1, 2000, that allocates 20% of tax increment for1152 housing under Subsection 17C-3-202(2)(a) or (3), the agency shall:1153 (i) adopt a housing plan showing the uses for the housing funds; and1154 (ii) provide a copy of the housing plan to the taxing entity committee and the loan fund1155 board.1156 (b) If an agency amends a housing plan prepared under Subsection (2)(a), the agency1157 shall provide a copy of the amendment to the taxing entity committee and the loan fund board.1158 (3) Notwithstanding Subsection (1), an agency:1159 (a) may enter into an interlocal agreement with each taxing entity within the economic1160 development project area; and1161 (b) for a project area subject to an interlocal agreement, shall obtain the consent of a1162 taxing entity before collecting tax increment attributable to that taxing entity from the project1163 area.1164 Section 15. Section 17C-3-205 is amended to read:1165 17C-3-205.Amending an economic development project area budget.1166 (1) An agency may by resolution amend an economic development project area budget1167 as provided in this section.1168 (2) To amend an adopted economic development project area budget, the agency shall:1169 (a) advertise and hold one public hearing on the proposed amendment as provided in1170 Subsection (3);1171 (b) if approval of the taxing entity committee or each taxing entity that is a party to an1172 interlocal agreement with the agency was required for adoption of the original project area1173 budget, obtain the approval of the taxing entity committee or each taxing entity that is a party1174 to an interlocal agreement with the agency to the same extent that the agency was required to1175 obtain [the consent of the taxing entity committee] consent for the project area budget as1176 originally adopted;1177 (c) if approval of the taxing entity committee or each taxing entity that is a party to an1178 interlocal agreement with the agency is required under Subsection (2)(b), obtain a written1179 certification, signed by an attorney licensed to practice law in this state, stating that the taxing1180 entity committee or each taxing entity that is a party to an interlocal agreement with the agency1181 followed the appropriate procedures to approve the project area budget; and1182 (d) adopt a resolution amending the project area budget.1183 (3) The public hearing required under Subsection (2)(a) shall be conducted according1184 to the procedures and requirements of Section 17C-3-201, except that if the amended project1185 area budget proposes that the agency be paid a greater proportion of tax increment from a1186 project area than was to be paid under the previous project area budget, the notice shall state1187 the percentage paid under the previous project area budget and the percentage proposed under1188 the amended project area budget.1189 (4) If the removal of a parcel under Subsection 17C-3-109(4)(a)(ii) reduces the base1190 taxable value of the project area, an agency may amend the project area budget to conform with1191 the new base taxable value without:1192 (a) complying with Subsections (2)(a) and (3); and1193 (b) if applicable, obtaining taxing entity committee approval or the approval of each1194 taxing entity that is a party to an interlocal agreement with the agency as described in1195 Subsection (2)(b). 1196 (5) If a proposed amendment is not adopted, the agency shall continue to operate under1197 the previously adopted economic development project area budget without the proposed1198 amendment.1199 (6) (a) A person may contest the agency's adoption of a budget amendment within 301200 days after the day on which the agency adopts the amendment.1201 (b) A person who fails to contest a budget amendment under Subsection (6)(a):1202 (i) forfeits any claim against an agency's adoption of the amendment; and1203 (ii) may not contest:1204 (A) a distribution of tax increment to the agency under the budget amendment; or1205 (B) an agency's use of a tax increment under a budget amendment.1206 Section 16. Section 17C-5-307 is amended to read:1207 17C-5-307.Allocating project area funds for housing. 1208 (1) (a) For a community reinvestment project area that is subject to a taxing entity1209 committee, which does not include an economic development project area under Chapter 3,1210 Economic Development, an agency shall allocate at least 20% of the agency's annual tax1211 increment for housing in accordance with Section 17C-1-412 if the community reinvestment1212 project area budget provides for more than $100,000 of annual tax increment to be distributed1213 to the agency.1214 (b) The taxing entity committee may waive a portion of the allocation described in this1215 Subsection (1)[(a)] if: 1216 (i) the taxing entity committee determines that 20% of the agency's annual tax1217 increment is more than is needed to address the community's need for income targeted housing1218 or homeless assistance; and1219 (ii) after the waiver, the agency's housing allocation is equal to at least 10% of the1220 agency's annual tax increment. 1221 (2) For a community reinvestment project area that is subject to an interlocal1222 agreement, an agency shall allocate at least 10% of the project area funds for housing in1223 accordance with Section 17C-1-412 if the community reinvestment project area budget1224 provides for more than $100,000 of annual project area funds to be distributed to the agency.1225 (3) The agency may use the housing allocation described in Subsection (1) to achieve1226 the affordable housing plan the community establishes in accordance with Section 17C-1-412.1227 Section 17. Repealer.1228 This bill repeals:1229 Section 17C-3-101.2,Applicability of chapter.